Which of the following is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management?
A) Sinking fund
B) Provident fund
C) Reserve fund
D) Pension fund

Question

Quizplus · Accepted Answer

A reserve fund is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management. The purpose of a reserve fund is to set aside money for future contingencies or to reinvest in the business. Sinking fund, provident fund, and pension fund are typically created to provide for future liabilities such as retirement benefits and are not necessarily related to improving company performance or turning around a struggling business.

Which of the Following Is Commonly Created During Good Times